-New foreclosures in New York City (869) were down 5% compared to Q1 2008 (918) and up 14% over Q4 2008 (764). -Queens comprised 66% of foreclosures in New York City. -Brooklyn saw a significant drop in new foreclosures, declining 74% compared to Q1 2008 and down 55% from Q4 2008.-Staten Island had the highest rate of foreclosures per household in Q1 2009, with one in every 1,187 homes scheduled for auction, followed by Queens with one in every 1,343 homes scheduled for auction. The rate in Manhattan was the lowest, with one for every 43,059 homes scheduled for auction

What this says to me is that if you are a bargain hunter you will find many a deal in the Queens and Staten Island. However if you want have a Blue Chip state of mind, you will stick with Manhattan. You might have to pay a higher premium but just from this information alone it appears that the Island of Manhattan is a much safer bet.